Class Action Lawsuit Filed On Behalf Of Investors Who Acquired OTRK Securities Between November 5, 2020 And February 26, 2020, Both Dates Inclusive
PHILADELPHIA, PA, USA, March 4, 2021 /EINPresswire.com/ — Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of Ontrak, Inc. (“Ontrak” or the “Company”) (NASDAQ: OTRK) to determine whether the Company engaged in securities fraud or other unlawful business practices.
On March 3, 2021, a class action lawsuit was filed in United States District Court, Central District of California, on behalf of Ontrak investors who purchased, or otherwise acquired, Ontrak securities between November 5, 2020 and February 26, 2021, both dates inclusive (the “Class Period”).
According to the class action complaint, throughout the Class Period, the Ontrak Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.
The Ontrak Defendants, according to the class action complaint, failed to disclose to investors (1) that Ontrak’s largest customer evaluated the Company on a provider basis, valuing Ontrak’s performance based on achieving the lowest cost per medical visit rather than clinical outcomes or medical cost savings; (2) as a result, Ontrak’s largest customer did not find the Company’s program to be effective and was reasonably likely to terminate its contract with Ontrak; (3) because this customer accounted for a significant portion of the Company’s revenue, the loss of the customer would have an outsized impact on Ontrak’s financial results; and (4) as a result of the foregoing, the Ontrak Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
INVESTORS WHO PURCHASED, OR OTHERWISE ACQUIRED, OTRK SECURITIES DURING THE CLASS PERIOD AND SUFFERED LOSSES GREATER THAN $50,000 ARE ENCOURAGED TO CONTACT KEVIN CAULEY, DIRECTOR, BUSINESS DEVELOPMENT, (215) 792-6676, EXT. 802, KCAULEY@KEHOELAWFIRM.COM, SECURITIES@KEHOELAWFIRM.COM, INFO@KEHOELAWFIRM.COM, TO DISCUSS THE SECURITIES CLASS ACTION INVESTIGATION OR POTENTIAL LEGAL CLAIMS.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.
This press release may constitute attorney advertising.
Kevin Cauley, Director, Business Development
Kehoe Law Firm, P.C.
Source: EIN Presswire